Term Deposit

What is a term deposit? 

A term deposit is a fixed term savings account that offers a safe, guaranteed rate of return on your money for the life of an investment. It can be an attractive option because the interest rate is usually higher than regular savings account rates. But if you withdraw some or all of the deposit before the agreed term finishes, you may incur a penalty that is deducted from the accrued interest. Learn more about term deposits.

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What payment methods do you accept for Term Deposits?

You can transfer funds via cash in branch, or electronic funds transfer. Please note that we do not accept Osko or PayID payments into term deposits.

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Term deposit vs. savings account: How are they different?

Fixed term deposits offer a guaranteed rate of return on your money for the life of an investment. They are also a low maintenance option so they are more 'set and forget' than savings accounts, which are more flexible with withdrawals but require meeting bonus conditions in order to get the bonus rate. You can learn more about the key differences between term deposits and other savings accounts.

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What happens if I want to change or cancel my term deposit after opening?

If you would like to cancel your term deposit after opening, or change the amount or term, you will have a grace period of 14 days from the date the term deposit is opened to provide alternative instructions without incurring a penalty. No interest is payable on withdrawn amounts during the grace period. Please call us if you want to make a change within this period.

Can I add money to a term deposit?

Customers are able to add additional funds in their term deposit during the 14-day grace period after account opening and on maturity of the term deposit.

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What happens if I need to access my money before maturity?

Term deposits are for savers who are confident they won’t need to access their funds during the term of the deposit, so think of them as a long term savings account. If you wish to withdraw money from your term deposit before the end of its term or break a term deposit, you’ll need to give us 31 days notice. For term deposits with terms less than 2 years where interest is paid at maturity, approval of any request for either a full or part redemption of funds prior to the expiry is at the discretion of Bank Australia.

The early withdrawal will incur an interest reduction and a Term Deposit early withdrawal admin fee will apply. The interest rate applicable to principal amounts withdrawn early will be adjusted by the percentage of the current term over the original agreed term. Please refer to Summary of Accounts and Deposit fees, charges and transaction limits for more information. Any funds you leave in the account will continue to earn interest at the interest rate originally agreed. The minimum investment amount of $500 must be retained in the term deposit.

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What happens at the maturity of my term deposit?

Fourteen days prior to maturity, you’ll receive a written notification letting you know that your term deposit is due to mature and the options available to you. If we don’t receive any instructions when your term deposit reaches maturity, it will automatically be reinvested for the same term at the advertised interest rate at the date of maturity.

You have a grace period of 14 days from the date your funds are reinvested to make any changes including the length of the investment term or the frequency of interest payments or add/withdraw funds at no cost. Please call us or log into internet banking and set your instructions if you want to make a change within this grace period. In internet banking, you can set instructions to add/withdraw during the grace period, renew for the same term or close the term deposit and transfer balance to a linked Bank Australia bank account. The closure of the term deposit will occur at maturity of the term deposit.